In less than a month, cryptocurrency doubles its value as advocates claim the commodity starts to displace gold
For the first time in its history, Bitcoin has risen above $40,000 (£29,500) after doubling in value in less than a month – only days after the cryptocurrency reached an all-time high of more than $34,800 on Sunday, which also marked the asset’s 12th trading day.
The commodity is becoming increasingly popular with institutional investors, and its advocates say that it is beginning to displace gold as a store of value. Bitcoin reaches record high on its creation’s 12th anniversaryRead moreAnalysts at U.S. investment bank JP Morgan said this week that bitcoin could potentially hit $146,000 as it strengthens its credibility as an alternative to the precious metal. They said that the cryptocurrency is also becoming a choice for investors who want to hedge against inflation but have been put off by the devaluation of the U.S. dollar. There are more than 18 million Bitcoins generated by the “miners” who supply the blockchain with computing power. The blockchain is a public database of all Bitcoin transactions and a network of thousands of computers around the world maintains them. Some critics warned that the crypto boom could be heading for trouble and that there is no intrinsic value to the coin itself.
“But the cryptocurrency continues to defy its critics, Naeem Aslam, the senior market analyst at AvaTrade, an online broker, said, “A substantial price level has been achieved and bitcoin has proved that this is not the asset class you want to mess around with.
Today, it has proved itself to all non-believers. “Institutional traders are the ones who really got the rally going,” he said, adding that when it breaks through the $50,000 mark, the next big moment for the cryptocurrency will arrive.